Decision Theory Without “Independence” or Without “Ordering”

Abstract

The goal of this essay is to help sort out the differences between these two strategies (Independence and Orderign) for generalizing expected-utility theory (EU). I argue in Section 4 that abandoning independence leads to an incoherence in sequential decisions. As Levi (1986a, 1986b, 1987) asserts and as 1 outline reasons for in Section 5, one can avoid this incoherence while relaxing ordering. Thus, the criterion of avoiding a sure loss in sequential deci- sions provides the needed demarcation.